What Is A Reverse Mortgage!read Before You Apply
What is a reverse mortgage? To put it simply, it is an opportunity for a senior to get cash money and to avoid the monthly payments. The reverse mortgage will be taken against the equity of your home, which you have paid through the years.
1. The Main Benefit Comes In The Form Of The Cash Money
If a senior needs more cash money to be able to take care of his every day expenses, he can take a reverse mortgage loan against the equity of his house. The loan will be paid to him monthly, as a lump sum, as a credit line or as a combination of all these. That is in a nutshell, what is a reverse mortgage loan.
2. Almost Everybody Can Qualify.
The rules say, that if you are American, age 62 or over and own your home, you will qualify for sure. And the older you are, the more expensive your home is, the more you will borrow against your home. So, when many seniors think, what is a reverse mortgage qualifications, they are very easy to fulfil.
3. What If I Want To Buy A New Home?
You may think, what is a reverse mortgage rules about buying a new home? Then you just use the reverse mortgage purchase loan. Actually you can use the appraised value of your old, or present, home and to get even freedom from the down payment.
This is very flexible, because many seniors want to change their homes into smaller ones, because they actually need no more big houses. Or they want to to move into cheaper area or closer to their friends or hobbies.
4. So There Are No Free Lunches, When Do You Pay?
When you think, what is a reverse mortgage, this is one of the basic features. Because there is no monthly payments, all expenses, capital and the interests will be paid back, when you, or the last owner, will permanently move away or die. Then the home will be sold and the costs will be deducted from the sales price. The rest will be paid to your heirs.
If the sales price will not cover the whole sum of the costs, the compulsory reverse mortgage insurance will help. In this case the difference will be paid from the insurance, so your other assets will never be used to pay your reverse mortgage costs.
5. The Law Orders You To Meet The Counselor.
So what is a reverse mortgage counselor? He is an expert, who can answer to all your questions about the reverse mortgage loans. It is wise to go through all your questions, before you go to meet this guy. In this way, you get the best benefits from your meeting.
by: Juhani TonttiAbout the Author:Juhani Tontti, B.Sc., Marketing. Before You Use The Reverse Mortgage Purchase Loan And Take Any Reverse Mortgages On House, Read The Pros And Cons. Visit: What Is A Reverse Mortgage